Home affordability continues to improve

Housing affordability is still on the up and up, according to a recent report.

Massey University’s Home Affordability Report for March 2009 found that over the last quarter all districts’ National affordability improved by 8.3 per cent.

During this period each of the three drivers in the affordability equation improved. House prices were down by 2.2 per cent, the average weekly wage increased by 1.1 per cent and the weighted average mortgage rate decreased by 5.2 per cent to 8.34 per cent.

Over the last quarter, eleven of the twelve regions showed improvements in affordability.

Central Otago/Lakes 18.2 per cent, Hawke’s Bay 14.0 per cent, Northland 12.1 per cent, Canterbury/Westland 10.3 per cent, Nelson/Marlborough 9.5 per cent, Manawatu/Wanganui 6.8 per cent, Auckland 6.7 per cent, Wellington 6.0 per cent, Otago 5.3 per cent, Taranaki 3.2 per cent, Waikato/Bay of Plenty 1.5 per cent. The only region showing a decline was Southland at 3.2 per cent.

On an annual basis, all districts’ affordability improved by 10.6 per cent.

Regional improvements in affordability were led by Central Otago/Lakes 21.5 per cent, followed by Canterbury/Westland 15.7 per cent with Southland in third at 13.9 per cent.

The remaining regions were as follows; Nelson/Marlborough 12.7 per cent, Waikato/Bay of Plenty 10.3 per cent, Otago 8.2 per cent, Auckland 7.4 per cent, Hawke’s Bay 7.3 per cent, Manawatu/Wanganui 6.6 per cent, Taranaki 3.9 per cent, and Northland 3.6 per cent.